Tories mull open-source IT contracts

A future Conservative government might impose a £100million limit on public sector IT contracts to stop anymore ICT 'white elephants.'



Rather than award a big software project to a single IT contractor, the party says it could be split into sections, manageable for individual firms using open-source.



If adopted across government, this "more open IT procurement process" could save an estimated £600m a year, according to a report commissioned by George Osborne.



The shadow chancellor, who is considering the idea, asked Cambridge University's Judge Business School to come up with a 'better IT deal for taxpayers' last March.



The resulting report, by Dr Mark Thompson, says better value for money for IT procurement is achievable by creating a level playing-field for open source software.



Supported by new data standards, the open route would save cash by reducing licensing fees and by freeing government from lengthy "monopoly supply" situations.



"These new standards would enable large-scale IT projects to be split into small modular components," the Tories said, welcoming the recommendations.



"Meaning that the UK government should never again need to sign an IT software contract worth over £100 million – so no more IT 'white elephants'."



The dig at government IT projects comes a day after MPs said completion of the NHS IT programme – running four years late – "looks doubtful" for 2015.



The Commons Public Accounts Committee said the delivery risks of the programme were "as serious as ever," and that rollout of e-care records was "very disappointing."



Armed with Dr Thompson's recommendations for IT procurement across government, the Conservatives said they were "looking to the future" with his report.



Mr Osborne added: "These proposals aren't just about saving money – they're about modernising government, making the public sector more innovative and improving public services."